Accounting I Exam Bank
Course Introduction
Accounting I provides an introduction to the fundamental principles and concepts of financial accounting. This course covers the accounting cycle, including the recording, classifying, and summarizing of business transactions, preparation of financial statements, and the analysis of business information. Students will learn about key topics such as double-entry bookkeeping, accrual and cash accounting methods, internal controls, and the ethical considerations in financial reporting. The course also explores the role of accounting in decision-making and its importance to stakeholders, providing a solid foundation for further study in the field.
Recommended Textbook
Financial Accounting 9th Edition by Walter T. Harrison
Available Study Resources on Quizplus
13 Chapters
2240 Verified Questions
2240 Flashcards
Source URL: https://quizplus.com/study-set/3596
Page 2
Chapter 1: The Financial Statements
Available Study Resources on Quizplus for this Chatper
174 Verified Questions
174 Flashcards
Source URL: https://quizplus.com/quiz/71392
Sample Questions
Q1) Accounting is moving in the direction of reporting more and more assets and liabilities at their fair values.
A)True
B)False
Answer: True
Q2) Since we live in a global economy, all countries have adopted the same accounting standards for business transactions.
A)True
B)False
Answer: False
Q3) When preparing a company's income statement:
A) commonly controlled corporations cannot combine all of their revenues and expenses and report them as one total.
B) the statement is prepared as of a specific date.
C) the term "other" generally notes that the amount is not sufficiently material to label it separately.
D) expenses are listed before revenues.
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Transaction Analysis
Available Study Resources on Quizplus for this Chatper
179 Verified Questions
179 Flashcards
Source URL: https://quizplus.com/quiz/71387
Sample Questions
Q1) To see how a transaction affects a business, managers must first enter the transaction in the journal.
A)True
B)False
Answer: False
Q2) Any event that has a financial impact on the business and can be measured reliably is a(n):
A) expense.
B) transaction.
C) asset.
D) journal.
Answer: B
Q3) An account is increased by a debit and has a debit balance. This account is:
A) an expense account.
B) a liability account.
C) an asset account.
D) both an expense account and an asset account.
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Accrual Accounting Income
Available Study Resources on Quizplus for this Chatper
205 Verified Questions
205 Flashcards
Source URL: https://quizplus.com/quiz/71386
Sample Questions
Q1) The financial statements can be prepared from the adjusted trial balance.
A)True
B)False
Answer: True
Q2) With an accrual:
A) the cash is received after the revenue is recorded.
B) the cash is paid before the expense is recorded.
C) plant assets can create an accrual adjustment.
D) prepaid expenses can create an accrual adjustment.
Answer: A
Q3) The income statement of a company must conform exactly to either the pure single-step or multi-step income statement.
A)True
B)False
Answer: False
Q4) Under cash-basis accounting, there is no transaction recorded when a sale is made on account.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Internal Control Cash
Available Study Resources on Quizplus for this Chatper
173 Verified Questions
173 Flashcards
Source URL: https://quizplus.com/quiz/71385
Sample Questions
Q1) The Toy Store borrowed $12,000 from the bank and agreed to keep $3,000 on deposit at all times. The net result of this compensating balance agreement is that:
A) the Toy Store actually only borrowed $9,000.
B) the Toy Store actually only borrowed $3,000.
C) the actual interest rate is lower than the stated interest rate.
D) none of the above are true.
Q2) The Sarbanes-Oxley Act of 2002:
A) requires companies to switch external auditors every two years.
B) requires companies to consider adopting a system of internal controls.
C) prohibits external auditors from auditing a public client and providing consulting services to the client.
D) created the Securities and Exchange Commission.
Q3) Internal control is so critical to a company that Congress passed the:
A) Sarbanes-Oxley Act of 2002.
B) Kemp-Oxley Act of 2002.
C) Economic Stimulus Law of 2010.
D) Public Company Accounting Oversight Board Act of 2002.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Short-Term Investments Receivables
Available Study Resources on Quizplus for this Chatper
201 Verified Questions
201 Flashcards
Source URL: https://quizplus.com/quiz/71384
Sample Questions
Q1) A separate account for each customer is kept in a(n):
A) control account.
B) subsidiary ledger.
C) general ledger.
D) control ledger.
Q2) The most acceptable way to measure bad debts is by:
A) the direct write-off method.
B) the percent-of-sales method.
C) the allowance method.
D) none of the above.
Q3) Allowance for uncollectible accounts is classified as:
A) a contra-expense account.
B) a contra-revenue account.
C) a contra-asset account.
D) none of the above.
Q4) Which of the following statement is correct?
A) Trading securities can be current or long-term assets.
B) Available-for-sale securities are always current assets.
C) Held-to-maturity securities are always current assets.
D) Trading securities are always current assets.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Inventory Cost of Goods Sold
Available Study Resources on Quizplus for this Chatper
187 Verified Questions
187 Flashcards
Source URL: https://quizplus.com/quiz/71383
Sample Questions
Q1) If ending inventory for the year ended December 31, 2011, is understated, this error will cause owners' equity to be:
A) overstated at the end of 2011 and understated at the end of 2011.
B) understated at the end of 2011 and overstated at the end of 2012.
C) overstated at the end of 2011 and correctly stated at the end of 2011.
D) understated at the end of 2011 and correctly stated at the end of 2011.
Q2) For most firms, the gross profit percentage changes significantly from year to year.
A)True
B)False
Q3) The financial statements of a merchandising company will show:
A) the same accounts as the financial statements of a service company.
B) gross profit after net income on the income statement.
C) inventory as a current asset on the balance sheet.
D) cost of goods sold as an operating expense on the income statement.
Q4) When applying the lower-of-cost-or-market rules to inventory valuation, market value generally refers to the cost at which the company can sell a unit of inventory.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 8
Chapter 7: Plant Assets, Natural Resources, Intangibles
Available Study Resources on Quizplus for this Chatper
211 Verified Questions
211 Flashcards
Source URL: https://quizplus.com/quiz/71382
Sample Questions
Q1) ________ are accounted for as long-term assets when purchased or developed, and their cost is transferred to expense through a process called depletion.
A) Intangible assets
B) Franchises
C) Natural resources
D) Trademarks
Q2) The Spa Company purchased land, buildings and equipment for $830,000. The land has been appraised at $300,000, the buildings at $510,000 and the equipment at $90,000. The journal entry to record this transaction will include a debit to:
A) land for $300,000.
B) land for $470,333.
C) building for $470,333.
D) equipment for $276,667.
Q3) All of the following assets should be amortized EXCEPT:
A) franchises.
B) goodwill.
C) patents.
D) timber.
Q4) Determine the cost of the dump truck, based upon the following data:
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Long-Term Investments the Time Value of Money
Available Study Resources on Quizplus for this Chatper
189 Verified Questions
189 Flashcards
Source URL: https://quizplus.com/quiz/71381
Sample Questions
Q1) An increase in foreign currency value relative to the U.S. dollar between the date of purchase and date of payment will create an exchange gain.
A)True
B)False
Q2) The following is the proper order for assets on a balance sheet:
A) Cash, intangibles, inventories, and long-term investments.
B) Cash, accounts receivable, property, plant and equipment, and long-term investments.
C) Cash, long-term investments, property, plant and equipment, and intangibles.
D) Cash, long-term investments, prepaid expenses and property, plant and equipment.
Q3) The gain or loss on the sale of an investment classified as "available-for-sale" is calculated by comparing the cost of the investment with the:
A) lower-of-cost-or-market value of the investment.
B) amount received from the sale of the investment.
C) market value of the investment.
D) amortized cost of the investment.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Liabilities
Available Study Resources on Quizplus for this Chatper
220 Verified Questions
220 Flashcards
Source URL: https://quizplus.com/quiz/71380
Sample Questions
Q1) The carrying value of a bond immediately after the bond was issued was $245,000. The bond price was 98. The face value of the bond was:
A) $245,000.
B) $121,250.
C) $250,000.
D) $249,900.
Q2) The accounting principle requiring that a company record the warranty expense in the same period that it records sales revenue is the:
A) going concern principle.
B) matching principle.
C) conservatism principle.
D) consistency principle.
Q3) Short-term notes payable are:
A) shown as a reduction to notes receivable on the balance sheet.
B) generally due within six to eight months.
C) shown on the balance sheet with current liabilities.
D) shown on the balance sheet after long-term liabilities.
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Stockholders Equity
Available Study Resources on Quizplus for this Chatper
126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/71391
Sample Questions
Q1) Treasury stock has a:
A) debit balance, the opposite of other equity accounts.
B) credit balance, the same as other equity accounts.
C) credit balance, the opposite of other equity accounts.
D) debit balance, the same as other equity accounts.
Q2) Stockholders of a corporation directly elect the:
A) Board of directors.
B) President of the corporation.
C) Chief Financial Officer of the corporation
D) Chairperson of the Board.
Q3) A retirement of common stock:
A) decreases the number of shares of common stock issued.
B) decreases the number of shares of common stock issued and reduces the balance in the common stock account.
C) produces a gain or loss reported on the income statement.
D) reduces the balance in the Common Stock account.
Q4) Treasury stock belongs in the stockholders' equity section of the balance sheet.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter
Statement,
Statement of Comprehensive Income, the Statement of Stockholders Equity
Available Study Resources on Quizplus for this Chatper
125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/71390
Sample Questions
Q1) All foreign transactions will result in a foreign-currency exchange rate gain or loss. A)True
B)False
Q2) On August 1, Central Computers, Inc. purchased thirty computer chips, on account, from a company located in Taiwan for 500,000 Taiwan dollars. On that date the Taiwan dollar is worth $0.040. On September 1, when the Taiwan dollar was worth $0.038, payment was made. The journal entry to record the sale on August 1 would include a:
A) credit to Accounts Payable $19,000.
B) credit to Accounts Payable $20,000.
C) credit to Foreign-Currency Transaction Gain $1,000.
D) credit to Cash $20,000.
Q3) The independent auditors' report is addressed to:
A) management.
B) board of directors only.
C) stockholders only.
D) board of directors and stockholders.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: The Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/71389
Sample Questions
Q1) The main purpose of the statement of cash flows is to:
A) provide information about the cash receipts and cash payments during a period.
B) provide information about the investing and financing activities during a period.
C) prove that revenues exceed expenses if there is a net income.
D) assist banking relationships.
Q2) The cash payment of interest on bonds payable is a cash outflow from operating activities.
A)True
B)False
Q3) Under the indirect method of preparing the statement of cash flows, the starting point to determine net cash from operating activities is:
A) the beginning cash balance.
B) the ending cash balance.
C) net income.
D) sales.
Q4) All critical investing and financing activities will affect cash.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Financial Statement Analysis
Available Study Resources on Quizplus for this Chatper
125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/71388
Sample Questions
Q1) In vertical analysis:
A) a base amount is optional.
B) a base amount is required.
C) comparative statements are optional.
D) comparative statements are required.
Q2) Benchmarking financial statements represents a form of:
A) horizontal analysis.
B) vertical analysis.
C) gross profit analysis.
D) trend analysis.
Q3) When comparing companies of different sizes, vertical analysis would be a useful tool.
A)True
B)False
Q4) A high inventory turnover may indicate that a company is experiencing difficulty selling its inventory.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 15